This is usually a high priority for parents and grandparents. Be careful that you do not sacrifice your retirement goal while trying to fund private school, college, and graduate school for your kiddos. Here are some things that may help you navigate this issue:
Goal: How much will college cost? Do you want to cover the entire cost, or only a portion?
Risks: The cost of college can rise faster than other living expenses.
Others: You may choose to include your children in the decision-making process to set expectations. As a parent, you may want to set up saving solutions that give other family members the ability to make cash gifts. Be cautious about having grandparents establish and control college savings accounts, as this may make things too complicated later on. If you choose to use a 529 plan account, make sure you name a successor custodian.
Time: When will funds be needed? Can you save systematically, and for how long?
Question: Is your Education goal on track to being fully funded?
Notes about Financial Aid: Keep in mind that the sticker price of college may not necessarily be the actual price for your student. Many students receive financial aid through the Free Application for Federal Student Aid (FAFSA), which can significantly reduce the cost of college. Researching scholarships, grants, and merit aid can also help lower the overall expense. Merit aid can be awarded based on academic, athletic, or artistic achievements, and it does not have to be repaid. Here are some valuable free resources for you:
1. FAFSA: https://studentaid.gov/h/apply-for-aid/fafsa
2. Scholarships: https://www.scholarships.com/
3. Fastweb: https://www.fastweb.com/
We also have a free calculator available at https://www.athenaprivatewealth.com/resource-center/investment/saving-for-college